Federal Reserve Governor Stephen Miran warned that the current policy stance risks slowing U.S. economic growth, arguing that interest rates may be tighter than necessary even with supportive measures from the Trump administration, such as tax cuts. Speaking at the Federal Reserve Bank of Dallas, Miran cautioned that “the biggest risk… is that we’re misconstruing just how tight monetary policy is,” and reiterated his call for additional rate cuts.
Miran said he does not see a significant inflation threat, highlighting that very low shelter inflation could offset price pressures in other parts of the economy. “I have a hard time being concerned about inflation,” he noted. As long as inflation remains contained, he believes the Fed should continue to support the labor market through looser policy, particularly because supply growth is outpacing demand, which he argued allows the economy to expand without reigniting inflationary pressures.
